Pick a niche that is
large enough!
You know all about your
“secret sauce” – the things that make you and your products or services unique.
Hopefully if you have been methodical in your approach, and you have matched
your product/services features and benefits to appeal to a target segments(s)
so you can create real value propositions that are appealing and will get you
customers.
Many small businesses
compete successfully against larger rivals by selecting and specializing in a
niche market or segments. However, you need to be extremely careful and do your
homework diligently, to ensure that the niche is large enough to support your
business and that customers are not too expensive to find and serve.
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| Transformanceinc |
Marketing budgets can
soon get swallowed if prospects for your products are hard to find. The more
you spend and the less enquiries you get, then the cost per enquiry can reach a
point where sales can be unprofitable!
You also may discover
that niche markets can be just as fiercely competitive as the mass market. You
need to figure out how fast your niche is growing and how much market share you
can realistically expect to capture.
If your financial
projections require you to hold more than a few percent of market share to
remain profitable, be careful. Don't press ahead unless you can convincingly
demonstrate to yourself how your competitive advantages will enable you to
become the market leader.
However, on a positive
note, if you find the right niches you can dominate them and provide barriers
to entry by bigger players. Also your smaller size should make you more nimble
and adaptable to market changes.
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